ShareThisDear Professor Bruce: I am about to open my own small computer repair and consulting business. I could use some advice to set the business up the right way, but I have limited resources. Do I need an attorney right away? What steps should I take before I hire one?Answer:Lawyers can save you money over time, but professional legal advice can be expensive. Here are a few tips from Jim Muehlhausen, attorney and author of "The 51 Fatal Business Errors and How to Avoid Them" and co-author (with Dan Janal) of "Your Lawyer Doesn't have to Cost and Arm and a Leg."If you decide to hire an attorney, hire the right kind. Don't pay to educate them; pay for existing knowledge. For example, an attorney who specializes in what you need will cost less in the long term than hiring a general-practice attorney.Since your clients are probably trying to get you to lower your fees, you might wonder if you can ask the attorney to lower her fees. This is not a good idea. "It might start the relationship off on the wrong foot," says Muehlhausen. However, you can negotiate the case to be a flat fee. This is always preferred to hourly billing. A flat rate almost always will lower the total bill more than any rate decrease could.Remember that you aren't marrying your lawyer. If you don't like him, you can always find another one. But try not to switch attorneys in the middle of a case. This could be costly or detrimental. If you switch, you'll have to pay the new attorney to get familiar with the case. You literally will be double paying. However, starting over and double paying beats having a poor attorney.The ratio of money spent vs. the amount yet to be spent will probably determine whether to change attorneys.The state bar association is a good starting point for finding an attorney who specializes in a practice area. Most states allow an attorney to specify only one area of expertise. The association also is the best place to file a complaint against an attorney.For further information, please visit www.51errors.com or www.negotiatingwithlawyers.com.(Bruce Freeman is president of ProLine Communications, a marketing and public relations firm in Livingston, N.J., and author of "Birthing the Elephant" (Ten Speed Press). E-mail questions to Bruce(at)SmallBusinessProf.com.)
Do all small businesses need attorneys?
Submitted by SHNS on Wed, 09/17/2008 - 13:02
Paying taxes unites us. It also divides us. People can pay five and even six times more in state and local taxes than other folks in similar circumstances making similar incomes.
Who's got your number?
In one of the fastest-growing forms of identity theft, crooks are stealing tax refunds by swiping personal information and using it to trick the Internal Revenue Service.
